Self-Regulatory Organizations; The Options Clearing Corporation; Order Granting Approval of Accelerated Delivery of Supplement to the Options Disclosure Document Reflecting Certain Changes to Disclosure Regarding Dividend Index Options, 67278 [E9-30081]

Download as PDF 67278 Federal Register / Vol. 74, No. 242 / Friday, December 18, 2009 / Notices inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR– NYSEAmex–2009–85 and should be submitted on or before January 8, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–30079 Filed 12–17–09; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Self-Regulatory Organizations; The Options Clearing Corporation; Order Granting Approval of Accelerated Delivery of Supplement to the Options Disclosure Document Reflecting Certain Changes to Disclosure Regarding Dividend Index Options December 10, 2009. March 26, 2009, The Options Clearing Corporation (‘‘OCC’’) submitted to the Securities and Exchange Commission (‘‘Commission’’), pursuant to Rule 9b–1 under the Securities Exchange Act of 1934 (‘‘Act’’),1 five preliminary copies of a supplement to its options disclosure document (‘‘ODD’’) reflecting certain changes to disclosure regarding options on dividend indexes.2 On November 10, 2009, the OCC submitted to the Commission five definitive copies of the supplement.3 The ODD currently contains general disclosures on the characteristics and risks of trading standardized options. Recently, the Chicago Board Options Exchange, Incorporated (‘‘CBOE’’) amended its rules to permit the listing and trading of options that overlie the S&P 500 Dividend Index.4 The proposed supplement amends the ODD to accommodate this change by providing sroberts on DSKD5P82C1PROD with NOTICES 10 17 CFR 200.30–3(a)(12). 1 17 CFR 240.9b–1. 2 See letter from Jean M. Cawley, Senior Vice President and Deputy General Counsel, OCC, to Sharon Lawson, Senior Special Counsel, Division of Trading and Markets (‘‘Division’’), Commission, dated March 26, 2009. 3 See letter from Jean M. Cawley, Senior Vice President and Deputy General Counsel, OCC, to Sharon Lawson, Senior Special Counsel, Division, Commission, dated November 9, 2009. 4 See Securities Exchange Act Release No. 61136 (December 10, 2009) (SR–CBOE–2009–022). VerDate Nov<24>2008 17:33 Dec 17, 2009 Jkt 220001 disclosure regarding dividend index options.5 Specifically, the proposed supplement to the ODD adds new disclosure regarding the characteristics of dividend index options. Further, the proposed supplement to the ODD adds new disclosure regarding the special risks of these options. The proposed supplement to the ODD also adds new disclosure stating that the options markets may use other methods than those specified in the ODD to set exercise prices. The proposed supplement is intended to be read in conjunction with the more general ODD, which, as described above, discusses the characteristics and risks of options generally.6 Rule 9b–1(b)(2)(i) under the Act 7 provides that an options market must file five copies of an amendment or supplement to the ODD with the Commission at least 30 days prior to the date definitive copies are furnished to customers, unless the Commission determines otherwise, having due regard to the adequacy of information disclosed and the public interest and protection of investors.8 In addition, five copies of the definitive ODD, as amended or supplemented, must be filed with the Commission not later than the date the amendment or supplement, or the amended options disclosure document is furnished to customers. The Commission has reviewed the proposed supplement and finds, having due regard to the adequacy of information disclosed and the public interest and protection of investors, that the proposed supplement may be furnished to customers as of the date of this order. It is therefore ordered, pursuant to Rule 9b–1 under the Act,9 that definitive copies of the proposed supplement to the ODD (SR–ODD– 2009–01), reflecting changes to disclosures regarding certain options on 5 The proposed November 2009 Supplement to the ODD supersedes and replaces the September 2008 supplement and amends the May 2007 and June 2008 supplement. 6 The Commission notes that the options markets must continue to ensure that the ODD is in compliance with the requirements of Rule 9b– 1(b)(2)(i) under the Act, 17 CFR 240.9b–1(b)(2)(i), including when future changes regarding dividend index options are made. Any future changes to the rules of the options markets concerning dividend index options would need to be submitted to the Commission under Section 19(b) of the Act. 15 U.S.C. 78s(b). 7 17 CFR 240.9b–1(b)(2)(i). 8 This provision permits the Commission to shorten or lengthen the period of time which must elapse before definitive copies may be furnished to customers. 9 17 CFR 240.9b–1. 10 17 CBR 200.30–3(a)(39). PO 00000 Frm 00116 Fmt 4703 Sfmt 4703 dividend indexes, as well as the other changes noted above, may be furnished to customers as of the date of this order. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–30081 Filed 12–17–09; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–61154; File No. SR–ISE– 2009–105] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Registered Representative Fee and an Options Regulatory Fee December 11, 2009. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on December 9, 2009, the International Securities Exchange, LLC (the ‘‘Exchange’’ or ‘‘ISE’’) filed with the Securities and Exchange Commission the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The ISE is proposing to amend its Schedule of Fees to eliminate registered representative fees and institute a new transaction-based ‘‘Options Regulatory Fee.’’ The text of the proposed rule change is available on the Exchange’s Web site (https://www.ise.com), at the Commission’s Web site at (https:// www.sec.gov) at the principal office of the Exchange, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received 1 15 2 17 E:\FR\FM\18DEN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 18DEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 74, Number 242 (Friday, December 18, 2009)]
[Notices]
[Page 67278]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-30081]


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SECURITIES AND EXCHANGE COMMISSION


Self-Regulatory Organizations; The Options Clearing Corporation; 
Order Granting Approval of Accelerated Delivery of Supplement to the 
Options Disclosure Document Reflecting Certain Changes to Disclosure 
Regarding Dividend Index Options

December 10, 2009.
    March 26, 2009, The Options Clearing Corporation (``OCC'') 
submitted to the Securities and Exchange Commission (``Commission''), 
pursuant to Rule 9b-1 under the Securities Exchange Act of 1934 
(``Act''),\1\ five preliminary copies of a supplement to its options 
disclosure document (``ODD'') reflecting certain changes to disclosure 
regarding options on dividend indexes.\2\ On November 10, 2009, the OCC 
submitted to the Commission five definitive copies of the 
supplement.\3\
---------------------------------------------------------------------------

    \1\ 17 CFR 240.9b-1.
    \2\ See letter from Jean M. Cawley, Senior Vice President and 
Deputy General Counsel, OCC, to Sharon Lawson, Senior Special 
Counsel, Division of Trading and Markets (``Division''), Commission, 
dated March 26, 2009.
    \3\ See letter from Jean M. Cawley, Senior Vice President and 
Deputy General Counsel, OCC, to Sharon Lawson, Senior Special 
Counsel, Division, Commission, dated November 9, 2009.
---------------------------------------------------------------------------

    The ODD currently contains general disclosures on the 
characteristics and risks of trading standardized options. Recently, 
the Chicago Board Options Exchange, Incorporated (``CBOE'') amended its 
rules to permit the listing and trading of options that overlie the S&P 
500 Dividend Index.\4\ The proposed supplement amends the ODD to 
accommodate this change by providing disclosure regarding dividend 
index options.\5\
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 61136 (December 10, 
2009) (SR-CBOE-2009-022).
    \5\ The proposed November 2009 Supplement to the ODD supersedes 
and replaces the September 2008 supplement and amends the May 2007 
and June 2008 supplement.
---------------------------------------------------------------------------

    Specifically, the proposed supplement to the ODD adds new 
disclosure regarding the characteristics of dividend index options. 
Further, the proposed supplement to the ODD adds new disclosure 
regarding the special risks of these options. The proposed supplement 
to the ODD also adds new disclosure stating that the options markets 
may use other methods than those specified in the ODD to set exercise 
prices. The proposed supplement is intended to be read in conjunction 
with the more general ODD, which, as described above, discusses the 
characteristics and risks of options generally.\6\
---------------------------------------------------------------------------

    \6\ The Commission notes that the options markets must continue 
to ensure that the ODD is in compliance with the requirements of 
Rule 9b-1(b)(2)(i) under the Act, 17 CFR 240.9b-1(b)(2)(i), 
including when future changes regarding dividend index options are 
made. Any future changes to the rules of the options markets 
concerning dividend index options would need to be submitted to the 
Commission under Section 19(b) of the Act. 15 U.S.C. 78s(b).
---------------------------------------------------------------------------

    Rule 9b-1(b)(2)(i) under the Act \7\ provides that an options 
market must file five copies of an amendment or supplement to the ODD 
with the Commission at least 30 days prior to the date definitive 
copies are furnished to customers, unless the Commission determines 
otherwise, having due regard to the adequacy of information disclosed 
and the public interest and protection of investors.\8\ In addition, 
five copies of the definitive ODD, as amended or supplemented, must be 
filed with the Commission not later than the date the amendment or 
supplement, or the amended options disclosure document is furnished to 
customers. The Commission has reviewed the proposed supplement and 
finds, having due regard to the adequacy of information disclosed and 
the public interest and protection of investors, that the proposed 
supplement may be furnished to customers as of the date of this order.
---------------------------------------------------------------------------

    \7\ 17 CFR 240.9b-1(b)(2)(i).
    \8\ This provision permits the Commission to shorten or lengthen 
the period of time which must elapse before definitive copies may be 
furnished to customers.
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    It is therefore ordered, pursuant to Rule 9b-1 under the Act,\9\ 
that definitive copies of the proposed supplement to the ODD (SR-ODD-
2009-01), reflecting changes to disclosures regarding certain options 
on dividend indexes, as well as the other changes noted above, may be 
furnished to customers as of the date of this order.
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    \9\ 17 CFR 240.9b-1.
    \10\ 17 CBR 200.30-3(a)(39).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-30081 Filed 12-17-09; 8:45 am]
BILLING CODE 8011-01-P

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